Skip the Northern Ireland Government Bar|
Skip navigation

Domestic Background

The Executive launched the Review of Rating Policy in 2000 due to inequities and anomalies in the current rating system.  These have largely arisen due to the absence of regular revaluations, with the last revaluation of domestic property taking place in 1976 based on 1960s rental values, which even then was a diminishing sector in the property markert. This section sets out the background to the consultation exercises undertaken as part of the review.

Consultation on the Draft Rates (Amendment)(Northern Ireland) Order 2006

The Government published for public consultation on 27 July 2006 the last of three Orders in Council associated with rating reform. Consultation on the ability of the draft Rates (Amendment) (Northern Ireland) Order 2006 to give effect to the Government's policy proposals closed on 15 September 2006.
Its main aim is to give effect to the move from a rental based domestic rating system to one based on capital values. However it also provides for a range of rate reliefs for those on low incomes, vulnerable groups and those most adversely affected by the move to the new system. The key domestic sector reforms contained in the draft Order include the introduction of a new rate relief scheme for those on low incomes; 100% rate relief for people in full-time education and training, 16/17 year olds and young people leaving care; the standardisation of rate liability in the social rented sector; transitional relief over three years where rate bills increase by more than 33% as a result of revaluation; and the establishment of a new independent valuation tribunal. A number of non-domestic reliefs and exemptions are also included which will be of benefit to rural businesses. These include farm diversification relief and relief for rural automatic telling machines.
The draft order was laid at Parliament on 09 October 2006 and made by Privy Council on 14 November 2006.

Consultation on the Draft Rates (Capital Values, etc.) (Northern Ireland) Order 2005

Consultation on the draft Rates (Capital Values, etc.) (Northern Ireland) Order 2005 concluded at the end of December 2005.  This provides for how the new capital values for domestic property will be determined and enables the Commissioner of Valuation to publish them in advance of the new system coming into effect in April 2007
The draft Order was laid at Parliament on 26 January 2006 and came into operation on 1 April 2006.

Consultation Report on the Reform of the Domestic Rating System – March 2005

Having taken account of the views during consultation, the Government published its response and the way forward for domestic rating reform.  This included plans to introduce
  • a discrete capital value system from April 2007;
  • a rate relief scheme for those on low incomes and just above the housing benefit threshold;
  • a standard 25% reduction in rates for people with a disability whose property has been modified because of their disability;
  • transitional arrangements for those who may experience a significant increase in their rates bill on moving to the new system;
  • regular revaluations; and
  • a new independent valuation tribunal.
In addition, enabling powers will be introduced that would allow a future Executive to modify the new system should it so wish by:
  • setting a maximum and/or minimum payment;
  • introducing a deferment scheme for pensioners;
  • adjusting the level and scope of relief available under the new rate relief scheme; and
  • introducing the rating of vacant domestic properties.
These key reforms will be introduced from April 2007 and will require primary legislation, which will be consulted upon in draft prior to their introduction.

2004 consultation exercise

Following the announcement in December 2002 that the current rental based system should be replaced with a capital value system in respect of domestic properties, the Government commissioned further work to inform which type of capital value based system should be introduced.  This work was undertaken by the University of Ulster, and together with a range of impact assessments carried out by the Department, showed that, taking account of Northern Ireland’s circumstances, a discrete capital value system would be more progressive, more New TSN positive and easier to understand than the alternatives. The Institute of Revenues, Rating and Valuation was also commissioned to carry out some research on the type of reliefs that should be available under the new system.
Taking account of all this research, the Government set out proposals for reform of the domestic rating system in Northern Ireland in a policy paper published in July 2004.  This was subject to 16 weeks consultation.  During the consultation period, a number of regional and themed seminars were held to which political representatives and stakeholder organisations were invited. The Northern Ireland Statistics and Research Agency also conducted a survey of 1300 representative households.

2003 consultation exercise

This report was published in June 2003. It contains the results of an initial assessment of the impact of the reform of the domestic rating system and was part of the wider Equality Impact Assessment (EQIA) process. The final EQIA report is contained within the 2004 Domestic Rating Reform policy paper, which is also available on this website.

2002 consultation exercise

Sean Farren, MLA, the then Minister of Finance and Personnel, published a consultation paper in May 2002 setting out  the options for change in respect of the method of valuation, the basis of liability and reliefs.    A first findings report was published in October 2002, providing an initial analysis of the consultation responses.
In December 2002, the Government (following the suspension of devolution) published a consultation report, and announced that a capital value system would be introduced in respect of domestic properties.